Medicare Premiums and Cost of Health Care Once on Medicare
Does the program estimate Medicare premiums based on my income each year? And how does it handle medical expenses that Medicare doesn't cover?
WealthTrace can estimate Medicare Part B and Part D premiums based on your projected income. You should also add a separate expense for other medical costs in retirement.
Turn Medicare Premium Estimates On or Off
- Click Plan Settings in the navigation menu.
- Select the Other tab.
- Turn Use Program Estimate for Medicare Parts B & D Premiums on or off.
- Your changes will automatically save.
When turned on, WealthTrace uses projected modified adjusted gross income and applicable IRMAA income brackets to estimate Medicare premiums.
Medicare generally uses income from two years earlier to determine premiums. For the first two years of the projection, WealthTrace uses the current projected year because historical income is not available in the plan. Beginning in the third year, the program applies the two-year lookback.
Add Other Medical Expenses
- Click Cash Flow Inputs in the navigation menu.
- Add a new expense in the Expenses section.
- Enter a name such as Additional Medical Expenses in Retirement.
- Enter the annual amount and applicable start date.
- Save the expense.
Use this expense for costs Medicare may not cover, such as dental care, vision care, copays, and other out-of-pocket medical expenses.
